Tesco personal loan rate cut to 6pc

Tesco Bank has increased on pressure other UK lenders by slashing its best rate on personal loans to 6 per cent.
The financial services arm of the UK’s largest retailer has cut the interest rate for unsecured loans between £7,500 and £15,000, over five years, to an attractive 6 per cent, putting it just behind Sainsbury’s market-leading 5.9 per cent personal loan rate .
The rate cut means customers borrowing the minimum £7,500 from Tesco over 36 months at the representative 6.0 per cent would pay £682.80 in interest, while the equivalent loan with Sainsbury’s Bank would cost £682.80 over the same period.
However, Tesco edges out its supermarket rival when it comes to borrowing between £15,000 and £25,000, with loans of this amount available with a 7.8 per cent APR – 0.2 per cent less than Sainsbury’s and 0.1 per cent short of Clydesdale Bank’s market leading rate in this category.
Both Tesco and Sainsbury’s loans are available to new and existing customers, although those planning on borrowing from Sainsburys Bank are required to hold a Nectar loyalty card .